Affordable electric vehicles may be the solution.
It is not easy to purchase a car on the current market. A variety of factors have made it more difficult to purchase a used or new car. Many consumers have had to delay their purchase decision, while others were forced to accept a lower model than they originally planned. This new pricing trend is creating a lot of concern for Stellantis CEO Carlos Tavares.
Recent data shows that the average new car transaction cost was $47,000. According to the KBB, Americans typically spend $47,077 on a car purchase. The average cost of a new car in 2021 rose $6,220 compared to 2020 pricing data. The trend of rising costs seems to be only getting worse, and recent events in the world are making matters worse.
Why is the cost of new cars on the rise? It all boils down to supply and need. The current supply of new cars has dropped while the demand is steady. Combine that with record inflation, a global chips shortage supply chain issues and a newly created global military conflict, and you get the perfect storm.
Carlos Tavares, CEO of Stellantis, explained the situation to The Detroit Bureau. He said, “I am very worried about the effect affordability becoming more of an issue as inflationary forces escalate.” Tavares knows that middle-class customers must purchase cars, and this price increase places a tremendous amount of pressure on their financial position.
Stellantis has a new strategy for 2030 that will allow them to create affordable BEVs. They plan to unveil 25 new BEVs in 2030. Stellantis will experience a significant transformation over the next eight years. We look forward to more affordable electric cars.